It was another hectic week in the ever crooked options markets, with several big options trades in well known names. Three of the most interesting and/or unusual options trades this week were seen in Express, Inc. (NYSE:EXPR), LaSalle Hotel Properties (NYSE:LHO), and in ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)
One of the weirdest options trade was in Express, Inc. (NYSE:EXPR), which saw one trader repeatedly selling puts right before earnings. The strange thing is Express, Inc plummeted at the open on Thursday morning after reporting better than expected results. They reported Q3 EPS of $0.15, $0.02 better than the average estimate of $0.13 per share. Despite the upside surprise, EXPR plummeted from the $13.30’s range on Wednesday to the $10.50 range Thursday, after lowering guidance for FY16 and Q416. That’s gotta hurt. Sometimes the big boys get burned just like the little guys.
The second unusual trade this week was in LaSalle Hotel Properties (NYSE:LHO), which saw a huge amount of call buying, also on Wednesday. In fact, Lasalle Hotel Properties saw 175 times normal call option volume as a large player grabbed all the calls they could find in LHO. First, a trader bought 2,985 LHO Jan 30 calls at $0.275, at the ask. Then a second gobble of 3887 Jan 30 calls at the ask. Thats a nice $160k + “bet” placed by someone with more info than the average joe.
Thursday brought a nice increase in share price for LHO, when it almost hit $29.00 intraday. It’s not clear, yet, what brought on this healthy appetite for LHO calls, but one day between now and mid January, you can bet we’ll see a sudden spike in LaSalle Hotel Properties stock price. The only thing we see in the near term is LaSalle Hotel Properties will be at Deutsche Bank Gaming, Lodging and Leisure One-on-One Conference.
And last, but certainly not least, was a large, and unusual, call options trade in ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) on Friday. One smart money guy went out on a whim and picked up a measly $285,000 of the DEC $31 calls in Acadia Pharmaceuticals. They purchased 2527 calls at the ask of $1.10. It’s no surprise that data is expected out in December from ACAD. Apparently this trader is “guessing” that said data will be quite positive.
ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) stock jumped quickly from a low of $26 and change to a day high of $27.66, and closed at $27.15 up 67 cents on the day. You can be sure they’ll be more to come soon in ACAD action.
That’s all for this week, we’ll be sure to update any action on any and all of these interesting options trades in Acadia Pharma, LaSalle Hotels, and Express Inc, if, or more likely, when it happens.